UBS: Strong sales for insurance companies at the start of the year, limited impact of product pricing rate cuts on Ping An

The UBS report indicates that domestic insurance companies have had strong sales since the beginning of this year, positioning themselves favorably to seize opportunities from deposit transfers. This is based on relatively attractive dividend policy yields, still low risk appetite, and the growth of retirement needs and inheritance plans, suggesting that the bancassurance channel naturally benefits from these opportunities.

The bank stated that Ping An Insurance (02318.HK) currently has about 20,000 non-Ping An Bank sales points, and the company will enhance sales point penetration and productivity this year. Despite the product pricing interest rate being lowered last August, the impact on profitability accumulation is limited, as the company has shifted to dividend policy products with low interest rate sensitivity.

The bank gives Ping An Insurance a "Buy" rating with a target price of 88 yuan